South Korea GDP misses estimates as weak consumption, construction sector drive growth to 6-quarter low.

By Jerry  Published On January 23, 2025

South Korea’s fourth-quarter GDP missed estimates Thursday, with weakness in consumption and the construction sector driving growth to a six-quarter low of 1.2%, year on year.

Advance figures missed the 1.4% expansion expected by economists polled by Reuters, and the growth was also softer compared with the 1.5% rise seen in the third quarter of 2024.

On a quarter-on-quarter basis, GDP growth also missed expectations, with the economy growing just 0.1% compared to the 0.2% forecast.

However, full-year GDP growth for 2024 came in at 2% compared with last year’s 1.4% gain.

The South Korean won weakened 0.13% to 1,436.4, while the country’s benchmark stock index Kospi fell 0.47%.

The Bank of Korea said that in 2024, private consumption growth fell and investment in the construction sector declined, but government consumption, facility investment, and exports growth rose.

Source: CNBC


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